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During last week, gold and silver didn’t do much. Their rally coincided with the depreciation of the US dollar against currencies such as Euro and Japanese yen. Bernanke’s testimony reminded that the Fed won’t taper QE3 until the U.S economy will show clear signs of progress. This news, however, didn’t stir up the precious metals markets. In the U.S several reports mostly showed a positive sentiment regarding the progress of the economy: Housing starts fell by 9.9% during June compared to May; Philly Fed index also rose to 19.8 in July; U.S jobless claims fell by 24k to 334k; Retail sales slightly increased by 0.6% during June. Will gold and silver resume their downward trend this week?

Herein is a short overview that outlines the main publications and decisions that may affect gold and silver next week between July 22nd and July 26th.

Based on upcoming reports and latest developments, gold and silver prices might not do much during the week. The upcoming U.S reports including new and existing home sales, jobless claims and core durable goods might indirectly affect precious metals prices. These reports could indicate the U.S economy is progressing and thus pull down the demand for safe haven investments such as gold and silver. These reports could also suggest the Fed might be one step closer towards tapering QE3, which is also likely to adversely affect bullion prices. In China, the upcoming manufacturing PMI report could affect the Aussie dollar, which is strongly correlated with precious metals prices. The US dollar depreciated during last week against leading currencies including Euro, Aussie dollar and Japanese yen. If this trend will change course, and the US dollar will rally, this could also adversely affect precious metals prices. Nonetheless, based on the upcoming publications it is more likely that precious metals prices won’t do much during the week and the volatility will be low, much like the low volatility during last week. In India, silver imports rose during the first five months of 2013 despite the rise in precious metals import taxes. Finally, the Indian Rupee slightly appreciated against the US dollar during last week; if the Rupee will continue to rise; it may also positively affect the demand of gold and silver in India.